Friday, June 2, 2017


Keybot the Quant remains long as the Friday trading session continues. The market drama continues. Keybot wants to flip short all week long but the internal parameters will not fully latch as yet to permit the move. This is the longest time that the algorithm has wanted to flip short but the internal parameters hold it back. The battle continues between banks, copper and volatility.

Banks and copper are bearish creating market weakness while volatility remains low creating stock market upside. The model wants to flip short but likely needs the SPX to drop under 2414 today, hence the turn may be imminent. Price is currently well elevated above here at 2437.

Market bulls need to push either XLF above 23.57 (now at 23.50) or JJC above 29.40 (now at 29.19) to signal that more upside is guaranteed. Market bears need the SPX to drop under 2414 to kick the downside selling into gear and the VIX would need to move above 11.70 to create an accelerated move lower in the stock market.

For now, the bulls continue to enjoy upside. however, the algo number is 15 points below the signal line (this is a disconnect in markets). Markets are very unstable currently with stock indexes melting up to new record highs and yet market internals such as banks, copper and oil sink lower. The beat goes on.

XLF is printing at 23.50 with the bull-bear line in the sand at 23.57. Market bulls win big with XLF above 23.57 while bears will win if XLF remains below and rolls over to the downside. The banks are going to tell the market direction story.

6/4/17; 7:00 PM EST =
6/2/17; 9:00 AM EST = +54; signal line is +69 but algorithm remains long
5/31/17; 7:00 PM EST EOM = +54; signal line is +69 but algorithm remains long
5/30/17; 10:00 AM EST = +54; signal line is +69 but algorithm remains long
5/30/17; 9:36 AM EST = +54; signal line is +69 but algorithm remains long
5/28/17; 7:00 PM EST = +70; signal line is +69

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